I have 3 mac68k with the same kind of problem. I have original disks of System 7.0.1, but when I insert "Disk Tools" or "Install 1" disk, the face ":-)" appears, but the disk ejects a few seconds later. This problem happens in all the 3 mac68k (2 LC II and 1 SE/30). When I insert the "Install 2" or another disk with no boot, the face ":-)" don't appear, and it ejects a few seconds later too. In the last case, I think it's normal, but in the first case, I don't know what's the problem.
Anybody with the same problem? I have no idea what's going on. Thanks.